Millions on Pet Halloween Costumes?

Why
We Spend More and More on Pets
By Kit Yarrow Oct. 04, 2012
American consumers are expected to
collectively spend $370 million on pet costumes
this Halloween. Thats $70 million more than
last year, and a whopping 40% increase
compared to 2010. And hows this for
perspective: Americans will spend barely three
times more on costumes for children than they
will for pets.
The estimated 15% of Americans who will buy
pet costumes arent likely to just throw a
bandana on their dog and be done with it. Not
only are more people purchasing Halloween
costumes for their dogstheres been a 24%
increase since 2010but theyre spending
much, much more per costume, with a rise of
40% in overall spending in two years. Expect to
see dogs dressed as tacos, skunks, crayons,
dinosaurs, chefs, princesses, leprechauns,
flowers, and even as Gumby. if you can
imagine it, theres a costume. Last years top-
selling costumes were pumpkins, devils, and hot
dogs.
Enthusiastic spending on Halloween pet
costumes is but one example of a larger year-
round trend indulging our pets. Last year,
consumers spent $51 billion on pets, a record
thats expected to be broken again this year. As
recently as 2002, total pet expenditures in the
U.S. came to less than $30 billion.
Part of the surge in pet spending is simply
because there are more pets out there. In 1988,
56% of American households had a pet. Today,
pets are part of 62% of homes.
But thats not a large enough increase to account
for such a hefty rise in spending. Why,
especially during a period of economic turmoil,
has pet spending continued to rise? Here are
some explanationsand some insights as to
what the trend says about our society:
1. Pets are stress-busters and we need that
now more than ever. In 1994, roughly 15% of
Americans reported increased anxiety in their
lives. By 2009 that number had risen 49%, and
its predicted to be even higher now.
When we cuddle, play with, and even just look
at our pets we get a hefty boost of oxytocin, our
bodys naturally occurring feel-good, stress-
relieving, emotional-bonding hormone. So do
our pets, by the way. Which makes all parties
more relaxed and happy, and more deeply
bonded.
That bond, and our appreciation of the stress
relief we get from our pets, is a partial
explanation for why 77% of Americans give
birthday presents to their pets, and why we
spend $5 billion on holiday gifts for our pets.
2. Pets have more status today. Compared to
previous eras, there is currently much less
hierarchical distance, and more equality,
between parents, kids, and pets. More than 9 in
10 owners consider their pets to be members of
the family, and 81% say pets are equal members
of the family. Pet lovers themselves recognize
that there has been a shift in the status of pets
within families: 60% of adults say they dont
remember their childhood pets as having the
exalted status the pets in their lives enjoy today.
Still need more proof? There are one million
dogs in the U.S. that have been named the
primary beneficiary of their owners will.
Higher status translates to pets deserving more
be it vacation care in pet hotels rather than
kennels, more toys, or better healthcare.
3. Pets fill connection and friendship vacuums.
Americans have about a third fewer close friends
today than they did 20 years ago averaging
two rather than the three they had, on average, in
1985. And though online connections alleviate
some of that loss, were neurologically less
satisfied by online friends than we are by
personal contact. Pets provide companionship
and connection that we need more than ever
today. Dogs, in particular, also increase human
social circles through gatherings at parks and
getting out into neighborhoods more often
through walks.
Cat owners also say they get plenty of emotional
connection from their pets. In fact, nearly a third
say theyd rather chat with their cat after a long
day than anyone else, and 39% say their cat is
more likely than a romantic partner to pick up on
their current mood.
Almost 95% of pet owners say their pet makes
them smile at least once a day. Its no wonder
that multiple studies show that pets lower blood
pressure, alleviate depression, and boost mental
and physical resiliency.
Given the emotional support, connection and
happiness pets provide, its not surprising that
people want to honor and reward them often
with goodies.
4. Pets fulfill our need to nurture. An
unprecedented number of people live alone
today 1 in 7 Americans. Plus, our years
without children stretch longer on both ends.
Empty nesters live longer and people have
children later in life. Regardless of a persons
household composition, the need to nurture is
universal. Which partly explains why 78% of
animal owners think of their animals as their
children and themselves as pet parents, not pet
owners. In fact, 58% of pet owners call
themselves mommy or daddy.
When youre a pet parent rather than an owner
youre more likely to want to give your pets a
human experiencefor example, fancy foods
and treats that are fresh, organic, and look like
something a human would eat.
5. There are simply more things to buy today.
Undoubtedly, many pet owners would have been
game to pamper their dogs and cats a decade
ago. But the options were more limited. An
abundance of choice gives us psychological
permission to take a step toward indulgence.
Last year, more than $11 billion dollars was
spent on pet supplies. Many are products that
werent available a decade ago, such designer
pet bowls, orthopedic dog beds, fancy puppy
carriers, and of course a plethora of toys. Were
not just talking about basic squeaky toy or
Frisbee, but things like Jimmy Chew plush
toys and doggie puzzles that provide your pet
with mental stimulation.
Even though the sharp rise in pet spending may
seem puzzling, when all things are considered,
pets are a bargain. The emotional gratification
most people receive from their pets is immense
far outweighing whatever money is spent.

Kit Yarrow chairs the psychology department of Golden
Gate University and was named as the universitys 2012
Outstanding Scholar for her research in consumer
behavior. She is co-author of Gen BuY and is a frequent
speaker on topics related to consumer psychology and
Generation Y.